Using HUD's CNA e-Tool for RAD Transactions Office of - - PowerPoint PPT Presentation

Using HUD's CNA e-Tool for RAD Transactions

Office of Recapitalization December 7, 2017

Webinar Logistics

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• Submit content

related questions via the WebEx Q&A box – submit to “All Panelists”

• Submit technical

issues related to WebEx in the Chat box – submit to “Host”

Presenters

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Host

• Greg Byrne, Office of Recapitalization

Speakers

• Robert Robinson, Federal Practice Group
• Andy Zehe, ICF

Today’s Webinar

• First session—an overview of using the CNA e-

Tool for RAD transactions with no FHA mortgage insurance.

• Second Q&A session in January 2018
• Attendees are encouraged to participate in

both sessions

• Recordings will be made available

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Learning Objectives

• In this session, you will learn:
• Requirements for using HUD's CNA e-

Tool for the 9 out of every 10 RAD transactions that do not use FHA insurance

• Unique aspects of CNA e-Tool use for

RAD deals with no FHA insurance.

• Reference Materials that are available to

assist CNA e-Tool users

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…an important step toward a more efficient and consistent underwriting approach at HUD…

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The CNA e-Tool

When & How is the e-Tool required?

• November 1, 2017 for FHA mortgage insurance

including any proposed for RAD transactions.

• February 1, 2018 for RAD transactions without FHA

insurance

• FHA insured transactions will follow the standard FHA

protocol

• Transactions not using FHA insurance will upload their

validated Assessment Tool to the RAD Resource Desk instead of the current RPCA Tool

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CNA e-Tool: RAD Processing

3rd Party completes & validates Assessment Tool, Flag Notes, and Attachments if applicable. Provide to PHA for upload. The PHA uploads complete CNA e-Tool, including all attachments and other documents, to the RAD Resource Desk with Financing Plan Submission. RAD Transaction Manager (“TM”) reviews the PHA’s upload. RAD TM Approves the CNA e- Tool and notifies the PHA RAD TM returns upload and requests corrections be

• made. The PHA then uploads the revised version to

the RAD Resource Desk Submission Process follows the Standard FHA CNA e-Tool Workflow Recap TM retrieves the Approved CNA e-Tool and uploads it to the RAD Resource Desk (With FHA Insurance) (Without FHA Insurance) Recap submits/approves CNA e-Tool n the Submission/Reviewer Portals so that it’s in the database and available for OAMPO and others to reference. PHA Hires a 3rd Party (typically a Needs Assessor) to produce a PCA, including the CNA e- Tool. PHA reviews 3rd Party Reports, returns them for changes, if necessary. Lender Hires a Needs Assessor to produce a PCA, including the CNA e-Tool. Lender reviews PCA, returns them for changes, if necessary. Lender reviews PCA results with the PHA/Owner, confirming the necessary rehab, IDRR and ADRR amounts.

Assessment Tool Replaces RPCA Tool

• No Change to the RPCA Scope of Work
• RPCA Tool is replaced with the Assessment Tool

– Excel Based Tool – Robust Building and Component Descriptions – Produces the Same 20-Year Needs and Reserve Requirements

• CNA Must be “Validated”

– Validation Engine is Open to the Public – Flag Notes Must be Created

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https://www.hud.gov/program_offices/housing/mfh/cna

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Where to find the CNA e-Tool

The Assessment Tool

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Key Differences for RAD

• Many assessors are familiar with the e-Tool.
• Two key differences in RAD-FHA versus RAD-

Non-FHA transactions:

• 1. Upload through the RAD Resource Desk,

NOT the e-Tool Submission Portal

• 2. Financial Factors tab completed by the

assessor, confirmed by the PHA

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Financial Factors Tab

• Information Provided by the Needs Assessor;

confirmed by PHA

• Inflation Rates and Trending Follow RAD

Program Guidance: ‒ 2% Change in Deposit Rate * ‒ 2% Change in Inflation Rate * ‒ 1% Rate on RfR Balance *

*Note: Rates should be entered in the “Next Rate” column of the Financial Factors Tab, with the other columns left blank.

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The Validation Engine

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Note: The Validation Engine is a publicly available tool requiring no certification or user account.

The Validation Engine

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• Must be “Validated” prior to upload;
• Flags created, no “S” (Severe Flags) can exist;
• Flag Notes need to be created by the assessor, and

comments provided;

• Assessment Summary Report to be created by the

assessor;

• Flag Notes (with Comments) and Assessment Summary

Report included with the PHA’s upload.

Uploading the CNA

• Completed CNA’s for non-FHA Insured RAD

transactions are uploaded through the RAD Resource Desk

• Flag notes (assessor should use the validation

portal to generate flags and draft flag notes)

• Assessment Summary Report (produced

through the validation portal)

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Instructions on How to Upload to RAD Resource Desk

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• Login to the RAD Resource Desk
• Upload the Assessment Tool in the Financing Plan grid

instead of the RPCA Tool

• Upload the Flag Notes (with assessor comments)
• Upload the Assessment Summary Report
• Upload the Balance of the CNA including the

Narrative & Energy Audit

Reference Materials

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The Ask A Question (AAQ) “Help Desk”

• Linked to from the CNA e-Tool homepage

HUDExchange.info > Program Support > Ask A Question

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Your questions?

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Thank you!

Remember, we will be holding a follow-on Q&A session in January to answer any questions you have prior to the mandatory submission date of February 1, 2018.

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